MEASURING THE BEHAVIORAL OF FIXED RATE BOND IN INDONESIA CAPITAL MARKET

Abstract

In this study, the researcher want to disclosure and research What are the aspect that have impacted discounted bonds toward interest rate, with par value and to implement calculation of bonds using duration, sensitivity and convexity. In discounted bonds that not increase the value even already have many aspect that actually impacted to Bonds and still below Par value. In This research, the analysis data of fixed rate 66 and fixed rate 69 from Bloomberg are studied by using analysis the value using duration, sensitivity and convexity. From the research and aiming to investigate the yield are in fair price or can help to increase the price of bonds but not happens in FR 66, its cause, and solve its performance problem. In order to fulfill understand about the aspects-aspects that affected, the researcher has conducted research about the graph for historical value and also related issues. Therefore, those information will be analyzed to generate and do find the factor, generate the solutions, and also find the problem to be consider to make the price of FR 66 bonds still not in the discounted price.For data collection, the researcher plan to collect the data by looking toward website OJK, and Bloomberg and want to compare with other/similar bonds. And the bonds that is fix rate 66 bonds, the data will get from historical data from the bonds. The result for implement duration, sensitivity and convexity the price already at fair price and the different because the coupon different.